TRADEWEB MARKETS INC-CLASS A (TW) Stock Fundamental Analysis
NASDAQ:TW - Nasdaq - US8926721064 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to TW. TW was compared to 225 industry peers in the Capital Markets industry. TW gets an excellent profitability rating and is at the same time showing great financial health properties. TW is valued quite expensively, but it does show have an excellent growth rating. With these ratings, TW could be worth investigating further for growth and quality investing!.
1. Profitability
1.1 Basic Checks
TW had positive earnings in the past year.
TW had a positive operating cash flow in the past year.
Each year in the past 5 years TW has been profitable.
In the past 5 years TW always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 6.89%, TW belongs to the best of the industry, outperforming 81.28% of the companies in the same industry.
TW has a Return On Equity (8.64%) which is comparable to the rest of the industry.
TW has a better Return On Invested Capital (7.58%) than 79.91% of its industry peers.
TW had an Average Return On Invested Capital over the past 3 years of 6.25%. This is in line with the industry average of 6.76%.
The last Return On Invested Capital (7.58%) for TW is above the 3 year average (6.25%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.89% | ||
| ROE | 8.64% | ||
| ROIC | 7.58% |
ROA(3y)5.66%
ROA(5y)4.74%
ROE(3y)7.22%
ROE(5y)6.08%
ROIC(3y)6.25%
ROIC(5y)5.43%
1.3 Margins
TW has a Profit Margin of 29.03%. This is in the better half of the industry: TW outperforms 68.04% of its industry peers.
In the last couple of years the Profit Margin of TW has grown nicely.
With a decent Operating Margin value of 39.55%, TW is doing good in the industry, outperforming 67.58% of the companies in the same industry.
TW's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 39.55% | ||
| PM (TTM) | 29.03% | ||
| GM | N/A |
OM growth 3Y5.86%
OM growth 5Y10.07%
PM growth 3Y11.28%
PM growth 5Y21.86%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
Compared to 1 year ago, TW has more shares outstanding
TW has more shares outstanding than it did 5 years ago.
TW has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 12.26 indicates that TW is not in any danger for bankruptcy at the moment.
The Altman-Z score of TW (12.26) is better than 96.35% of its industry peers.
TW has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 12.26 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 3.99 indicates that TW has no problem at all paying its short term obligations.
With an excellent Current ratio value of 3.99, TW belongs to the best of the industry, outperforming 81.28% of the companies in the same industry.
TW has a Quick Ratio of 3.99. This indicates that TW is financially healthy and has no problem in meeting its short term obligations.
TW has a better Quick ratio (3.99) than 81.28% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.99 | ||
| Quick Ratio | 3.99 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 29.78% over the past year.
Measured over the past years, TW shows a very strong growth in Earnings Per Share. The EPS has been growing by 23.66% on average per year.
Looking at the last year, TW shows a very strong growth in Revenue. The Revenue has grown by 28.98%.
Measured over the past years, TW shows a quite strong growth in Revenue. The Revenue has been growing by 17.35% on average per year.
EPS 1Y (TTM)29.78%
EPS 3Y21.45%
EPS 5Y23.66%
EPS Q2Q%18.75%
Revenue 1Y (TTM)28.98%
Revenue growth 3Y17.04%
Revenue growth 5Y17.35%
Sales Q2Q%25.23%
3.2 Future
Based on estimates for the next years, TW will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.24% on average per year.
The Revenue is expected to grow by 9.35% on average over the next years. This is quite good.
EPS Next Y19.93%
EPS Next 2Y16.74%
EPS Next 3Y15.84%
EPS Next 5Y12.24%
Revenue Next Year16.73%
Revenue Next 2Y13.99%
Revenue Next 3Y9.36%
Revenue Next 5Y9.35%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 45.94, TW can be considered very expensive at the moment.
Based on the Price/Earnings ratio, TW is valued a bit more expensive than the industry average as 79.91% of the companies are valued more cheaply.
TW's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 29.63.
The Price/Forward Earnings ratio is 38.31, which means the current valuation is very expensive for TW.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TW indicates a slightly more expensive valuation: TW is more expensive than 75.80% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.68. TW is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.94 | ||
| Fwd PE | 38.31 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TW is valued a bit cheaper than 64.84% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as TW.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.34 | ||
| EV/EBITDA | 29.12 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates TW does not grow enough to justify the current Price/Earnings ratio.
TW has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as TW's earnings are expected to grow with 15.84% in the coming years.
PEG (NY)2.3
PEG (5Y)1.94
EPS Next 2Y16.74%
EPS Next 3Y15.84%
5. Dividend
5.1 Amount
With a yearly dividend of 0.37%, TW is not a good candidate for dividend investing.
TW's Dividend Yield is slightly below the industry average, which is at 10.00.
Compared to an average S&P500 Dividend Yield of 2.29, TW's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.37% |
5.2 History
On average, the dividend of TW grows each year by 10.06%, which is quite nice.
TW has paid a dividend for at least 10 years, which is a reliable track record.
TW has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)10.06%
Div Incr Years2
Div Non Decr Years5
5.3 Sustainability
TW pays out 17.01% of its income as dividend. This is a sustainable payout ratio.
TW's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP17.01%
EPS Next 2Y16.74%
EPS Next 3Y15.84%
134.15
+4.27 (+3.29%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners102.68%
Inst Owner Change-2.24%
Ins Owners0.11%
Ins Owner Change-0.4%
Market Cap28.59B
Analysts81.74
Price Target154.46 (15.14%)
Short Float %1.37%
Short Ratio1.64
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.37% |
Yearly Dividend0.36
Dividend Growth(5Y)10.06%
DP17.01%
Div Incr Years2
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-2.4%
Min EPS beat(2)-4.05%
Max EPS beat(2)-0.75%
EPS beat(4)0
Avg EPS beat(4)-2.22%
Min EPS beat(4)-4.05%
Max EPS beat(4)-0.75%
EPS beat(8)1
Avg EPS beat(8)-2.04%
EPS beat(12)3
Avg EPS beat(12)-1.39%
EPS beat(16)3
Avg EPS beat(16)-1.7%
Revenue beat(2)0
Avg Revenue beat(2)-2.85%
Min Revenue beat(2)-3.04%
Max Revenue beat(2)-2.67%
Revenue beat(4)0
Avg Revenue beat(4)-3.25%
Min Revenue beat(4)-3.78%
Max Revenue beat(4)-2.67%
Revenue beat(8)0
Avg Revenue beat(8)-3.04%
Revenue beat(12)0
Avg Revenue beat(12)-3.01%
Revenue beat(16)0
Avg Revenue beat(16)-2.84%
PT rev (1m)1.48%
PT rev (3m)6.7%
EPS NQ rev (1m)0.61%
EPS NQ rev (3m)5.34%
EPS NY rev (1m)2.26%
EPS NY rev (3m)2.34%
Revenue NQ rev (1m)-0.2%
Revenue NQ rev (3m)8.99%
Revenue NY rev (1m)0.43%
Revenue NY rev (3m)0.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.94 | ||
| Fwd PE | 38.31 | ||
| P/S | 16.56 | ||
| P/FCF | 35.34 | ||
| P/OCF | 31.84 | ||
| P/B | 4.93 | ||
| P/tB | 26.66 | ||
| EV/EBITDA | 29.12 |
EPS(TTM)2.92
EY2.18%
EPS(NY)3.5
Fwd EY2.61%
FCF(TTM)3.8
FCFY2.83%
OCF(TTM)4.21
OCFY3.14%
SpS8.1
BVpS27.22
TBVpS5.03
PEG (NY)2.3
PEG (5Y)1.94
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.89% | ||
| ROE | 8.64% | ||
| ROCE | 9.97% | ||
| ROIC | 7.58% | ||
| ROICexc | 9.52% | ||
| ROICexgc | 84.36% | ||
| OM | 39.55% | ||
| PM (TTM) | 29.03% | ||
| GM | N/A | ||
| FCFM | 46.87% |
ROA(3y)5.66%
ROA(5y)4.74%
ROE(3y)7.22%
ROE(5y)6.08%
ROIC(3y)6.25%
ROIC(5y)5.43%
ROICexc(3y)8.1%
ROICexc(5y)6.86%
ROICexgc(3y)62.43%
ROICexgc(5y)54.31%
ROCE(3y)8.23%
ROCE(5y)7.14%
ROICexcg growth 3Y21.61%
ROICexcg growth 5Y6.29%
ROICexc growth 3Y18.56%
ROICexc growth 5Y23.81%
OM growth 3Y5.86%
OM growth 5Y10.07%
PM growth 3Y11.28%
PM growth 5Y21.86%
GM growth 3YN/A
GM growth 5YN/A
F-Score9
Asset Turnover0.24
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 40.4% | ||
| Cap/Sales | 5.15% | ||
| Interest Coverage | 265.16 | ||
| Cash Conversion | 99.47% | ||
| Profit Quality | 161.41% | ||
| Current Ratio | 3.99 | ||
| Quick Ratio | 3.99 | ||
| Altman-Z | 12.26 |
F-Score9
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)35.77%
Cap/Depr(5y)32.98%
Cap/Sales(3y)4.94%
Cap/Sales(5y)4.87%
Profit Quality(3y)178.16%
Profit Quality(5y)201.53%
High Growth Momentum
Growth
EPS 1Y (TTM)29.78%
EPS 3Y21.45%
EPS 5Y23.66%
EPS Q2Q%18.75%
EPS Next Y19.93%
EPS Next 2Y16.74%
EPS Next 3Y15.84%
EPS Next 5Y12.24%
Revenue 1Y (TTM)28.98%
Revenue growth 3Y17.04%
Revenue growth 5Y17.35%
Sales Q2Q%25.23%
Revenue Next Year16.73%
Revenue Next 2Y13.99%
Revenue Next 3Y9.36%
Revenue Next 5Y9.35%
EBIT growth 1Y35.09%
EBIT growth 3Y23.91%
EBIT growth 5Y29.17%
EBIT Next Year24.76%
EBIT Next 3Y12.75%
EBIT Next 5Y12.32%
FCF growth 1Y18.2%
FCF growth 3Y15.37%
FCF growth 5Y24.86%
OCF growth 1Y20.33%
OCF growth 3Y15.81%
OCF growth 5Y23.62%